Best Invest Portfolio

Coed

Hi All,
Having little financial knowledge, but recognising the need to invest, I hold a ready made portfolio designed for 'growth'. Best Invest offer a range of ready made multi asset portfolios which the customer selects, based broadly on risk/return. I plan to keep funds in there for a minimum of another 5 years.
Is it within forum rules or manners to ask for any comments on this particular product ? If so, anything would be much appreciated!
Richard

bigadaj

These products tend to be a halfway house and potentially the worst of both worlds.

Charges are higher than simple multi asset funds, and you're not getting any personal benefit of bespoke advice as you would if you went to an ifa.

If this is starting with small amounts then most people would suggest playing this into a multi asset fund with a range if asset classes, vanguards lifestrategy, l and g multi asset or black rock consensus are the most frequently quoted. Doing this through a discount broker, like Charles Stanley direct or indeed bestinvest or several others will have total fees of around 0.5% which is half to a third less than the option you've suggested. They cover world markets, also and l and g has property, and rebalance automatically, you just decide the percentage split in equities. List of discount brokers and charges are on the monevator website or you could look at Lang cat or one of Justin mod rays sites.

mike88

I think the above post is incorrect. Best Invest merely select a basket of funds with fees no greater than those you would pay if you were to buy them individually. The point needs checking though as I have no personal knowledge of Best Invest but receive a load of material from other discount brokers who offer a similar service.

For what it is worth I think the idea of ready made portfolios is good for those with little knowledge of investing and wish to avoid using an IFA as many do.

dunstonh

They have an in-house multi-asset fund for each level. e.g. IFSL TILNEY BESTINVEST GROWTH PORTFOLIO.

Now get ready for this.... The fund OCF is 1.58% (unbundled version). That is extremely high. You add that to their platform charge as well.

So, not only is it a very expensive DIY option, it is also higher charged than an advised investment via an IFA. So, you are not getting the main benefit of going DIY (lower cost) and you are not getting the benefit of using an IFA (increased consumer protection and an expert picking the investments). It is the worst of of both worlds as mentioned.

Playing_with_Fire_2

They are a poor product IMO. If you can make an informed decision about which RMP to pick, you know (or can learn) enough to construct a cheaper portfolio that will be tailored to your preferences and needs.

If you can't construct a portfolio then you should be speaking with an IFA, you'll get a better product for lower charges.

If you really don't want to pay for an IFA, and don't want to learn more, but are willing to take the advice of an internet stranger, invest in Vanguard Lifestrategy 100 to be closer to your growth portfolio; and Vanguard Lifestrategy 80 if you're not so sure.

Coed

Thank you all for your thoughts! I said I am a financial numpty and whilst these ready made funds seemed a logical way to go, from your comments it looks like I should think again!
Richard

Dird

dunstonh wrote: »

They have an in-house multi-asset fund for each level. e.g. IFSL TILNEY BESTINVEST GROWTH PORTFOLIO.

Now get ready for this.... The fund OCF is 1.58% (unbundled version). That is extremely high. You add that to their platform charge as well.

Are these similarly bad then? =/ http://www.telegraph.co.uk/finance/personalfinance/investing/isas/10644242/Isa-fund-tips-best-UK-growth-funds.html

dunstonh

Dird wrote: »

Are these similarly bad then? =/ http://www.telegraph.co.uk/finance/personalfinance/investing/isas/10644242/Isa-fund-tips-best-UK-growth-funds.html

Obviously they are very different funds and you would expect them to be a bit cheaper and they are noticeably so.

Personally, I am not a fan of general UK growth funds. If you want UK Growth then an index tracker is probably better. However, I prefer my UK allocations to be equity income or recover or special sits depending on where we are in the economic cycle.

Dird

dunstonh wrote: »

Obviously they are very different funds and you would expect them to be a bit cheaper and they are noticeably so.

Personally, I am not a fan of general UK growth funds. If you want UK Growth then an index tracker is probably better. However, I prefer my UK allocations to be equity income or recover or special sits depending on where we are in the economic cycle.

If I read Tim Hale's Smarter Investing will I understand how they're different & all those other things you've just mentioned? :rotfl:

dunstonh

Dird wrote: »

If I read Tim Hale's Smarter Investing will I understand how they're different & all those other things you've just mentioned? :rotfl:

Tim Hale is an opinion of a style of investing and focuses on that bias. Some people buy into that bias . Others remain open minded and consider other strategies. However, it will certainly do you no harm to read it. It you are starting from a position of limited knowledge then it will improve it. That particular investment style may or may not appeal to you but you wont know unless you read it.

Dird

dunstonh wrote: »

Tim Hale is an opinion of a style of investing and focuses on that bias.

Any books typically recommended that focus on other styles?